UPS plans to cut 1,800 positions

Shipping giant United Parcel Service Inc. said it intends to eliminate 1,800 management and administrative jobs as it repositions itself for a gradual economic recovery.

About 1,100 employees will be offered a voluntary separation package as part of the work force reduction, which is meant to streamline the company's U.S. small package segment. Other cuts will come through attrition and layoffs. The U.S. small package segment represents roughly 60 percent of annual revenue at UPS.

UPS has 408,000 employees worldwide. About 340,000 of those workers are in the U.S. The firm will reduce its U.S. regions to three from five and its U.S. districts to 20 from 46 in April. It has no plans to close operating facilities. UPS said the consolidation of offices will not affect the sales and operations team, including drivers.

UPS previously cut thousands of jobs and held down costs during the economic downturn. As of the end of the second quarter of 2009 it had shed 15,000 jobs, mostly through attrition, compared to the same time in 2008. In early 2009, UPS said it would freeze management salaries and suspend 401(k) matches for employees.

The company's chief rival, FedEx, reported fiscal second-quarter earnings last month down 30 percent from a year earlier. FedEx said the economy has "reached a turning point," but a full recovery could still be a long way off.

U.S. operations of both UPS and FedEx have been hurt as consumers and businesses shipped less and slowed remaining shipments to save money in the weak economy.